Credit Suisse on Tuesday announced targets for cutting emissions tied to loans it makes to six sectors as well as restrictions on lending to the dirtiest fossil fuel projects, although climate activists said the announcements fell short of what was needed.

 

The Swiss bank set emissions reductions targets for 2030 for the power generation, commercial real estate, iron and steel, aluminium, and automotive sectors, with emissions intensity reduction goals ranging 31%-64%.

 

Credit Suisse already has a pledge in place to cut absolute emissions tied to loans to the oil, gas and coal sector of 49% by 2030, and on Tuesday said emissions from loans to those clients had fallen 64% by end-2022, although the numbers can fluctuate year to year.

 

The bank also announced some restrictions on lending to companies involved in Arctic oil and gas, oil sands and deep sea mining.

 

Banks globally are unveiling targets for how they intend to align their businesses with the Paris climate agreement and reach net zero greenhouse gas emissions by 2050.

 

Environmental groups have welcomed banks' increased disclosure but accuse many lenders of lacking ambition and failing to cut their support for fossil fuels fast enough if the world is to limit global temperature rises to below 1.5 degrees Celsius.

 

Responsible investment advocacy group ShareAction called on investors to vote against Credit Suisse's climate strategy, which will be put to an advisory shareholder vote at its annual general meeting.

 

"Credit Suisse's new climate strategy is not fit for purpose – it ignores two of the most crucial areas of fossil fuel financing that would have enabled the bank to reach net zero by 2050," Kelly Shields, ShareAction's Campaign and Project Manager, said in a statement, referring to the bank's oil and gas policy and the omission of capital markets activities.

 

Some banks have omitted emissions linked to underwriting of shares and bonds - so-called facilitated emissions - from their targets until there is an agreed industry methodology to measure them. (Reuters)